Businessmodel of Persistent Systems

Customer Segments

Persistent Systems has a mass market business model, with no significant differentiation between customer groups. The company targets its offerings at firms across industries and sizes.

Value Proposition

Persistent Systems offers two primary value propositions: accessibility and brand/status.

The company creates accessibility by providing a wide variety of options. It has acquired several companies since its founding; in the past five years alone it has purchased PRM Cloud Solutions, Citrix’ Products CloudPlatform, and the digital content management solutions business of Akumina. All of these acquisitions have enabled it to significantly increase its capabilities.

The company has established a strong brand because of its success. It generated revenues of $351.7 million in 2015, and has achieved a compound annual growth rate of 24% for its revenues for the last five years. It has also won many honors, including the following:

• The Aegis Graham Bell Award 2015 for innovation in the Location Based Services (LBS) category
• The Dataquest Business Technology 2015 Award in Mobility
• The CIO 100 Award by IDG group for three consecutive years
• The I.C.O.N.I.C. IDC Insights Award 2015
• Recognition as a Leader in the Building Enterprise Software segment by Zinnov GSPR Ratings ### Channels

Persistent Systems’ main channel is its direct sales team. The company promotes its offerings through its social media pages, advertising, sponsorships, summits, exhibits, and conferences.

Customer Relationships

Persistent Systems’ customer relationship is primarily of a self-service nature. Customers utilize its products while having limited interaction with employees. That said, there is a personal assistance component in the form of phone and e-mail support.

Key Activities

Persistent Systems’ business model entails designing and developing its software for customers.

Key Partners

Persistent Systems’ key partners are the suppliers that provide it with the equipment and services it needs to run its operations and the contractors who lend their temporary work services. The company’s partnership network includes IBM, Oracle, Salesforce, Appian, and Microsoft.

Key Resources

Persistent Systems’ main resources are its human resources, who include the engineers that design and develop its software and the customer service personnel who provide support.

Cost Structure

Persistent Systems has a cost-driven structure, aiming to minimize expenses through significant automation. Its biggest cost is cost of purchased software licenses, a variable expense. Other major drivers are in the areas of customer support/operations and sales/marketing, both fixed costs.

Revenue Streams

Persistent Systems has one revenue stream: revenues it generates from the sale of its products to its customers.